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Oil & Gas Project Economics and Risk Analysis

Who should attend: 

Professionals seeking an understanding of the economic valuation and risk assessment processes and techniques within the global oil and gas industry. Including those employed by financial, commercial, legal, insurance, governmental, service, supply and advisory organisations.

4 days
Course aims: 

This intensive four-day programme provides practical guidance of the fundamentals of oil and gas asset valuation and economic risk assessment and is designed to enhance the contribution that participants make to the investment decision mechanisms and processes within the industry.
Course outline: 
  • Introduction to economics and risk analysis
  • Basic concepts
    • identifying project cash flows and sources of information
  • Project management fundamentals
  • Energy project economics and measures of performances
  • Project ranking - how to choose the best alternative
    • How to optimise expenditure
  • How to deal with inflation and with exchange rates
  • Taking account of taxation
  • Accounting measures vs economic measures
    • understanding other financial criteria for decision making
    • balancing short term vs long term business objectives
  • Economics, risk & decisions - decision points are risk points
    • decision points for oil fields and gas fields
    • risk & probability definitions and concepts
    • risk identification, measurement & management
    • forecasting as risk management
    • assumptions, sensitivities & risk premia
  • Exploration & appraisal decisions, uncertainty, risk and exposure Monte Carlo Simulation
  • Economic models & spreadsheet design
  • Development decisions
    • work scope definition and options
    • decommissioning economics & risks
    • cost estimating and contingencies
    • financing options
    • construction contracts
  • Further development decisions & economic cut off
  • Preparing convincing project proposals
  • Post project appraisal